SHARED SERVICES UPDATE

On Thursday 18 October 2007, Public Service Association (PSA) President Lindsay Oxlad, Chief Industrial Officer Peter Christopher and Industrial Officer Josie Barbaro attended a briefing on Shared Services with Under Treasurer Jim Wright. The subject of the briefing was the Shared Services Submission approved by Cabinet on 15 October 2007.

The following is a summary of some of the key points raised in the Submission;

• A new organisation, Shared Services SA, will be established under the Department of Treasury and Finance.

• 2,300 Full Time Equivalents (FTE's) spread across 4000 positions have been identified in Corporate Service areas across 56 Government Agencies.

• There will be one centrally located service in the CBD as the scale does not justify having 'clusters' in various sites.

• Services to be transitioned in the first quarter of 2008 include Payroll, Accounts Receivable and Accounts Payable.

• Positions will transfer to Adelaide, including those in regional areas. People not electing to transfer will be surplus to requirements. Placement Services within Department of Premier and Cabinet will manage this process. A commitment was given to consult with the PSA but no further details provided.

• All budget and costs associated with these services will be transferred from agencies.

• Overall, potential savings are of 570 FTE's across Shared Services (not just initial priority services), achieved through redeployment and natural attrition. This represents a reduction of approximately 25%.

• Government stated it is not intended to reduce services to regional communities, or to impact negatively on regional communities.

• Given DFEEST changes which have already occurred, PSA requested information on how regional DFEEST offices will be affected, however no clear answer was provided.

PSA Position: No members should be disadvantaged

The PSA reiterated its position that members required to transition should not be disadvantaged financially, i.e. not suffer a reduction in their take home pay. This could occur as a result of relocation expenses should members choose to move to Adelaide, increased travelling expenses, or loss of take home pay for members currently Salary Sacrificing as a result of changing employers, particularly for members currently working in Health areas.

The response provided was that Government is aware of the Salary Sacrifice issues and a response would be provided to the PSA, however apart from standard employment conditions, no further compensation has been considered.

It is imperative this level of detail is provided to the PSA prior to any members transitioning. The PSA has made it clear that co-operation from members is dependent on assurances and commitments from Government about their employment conditions, including pay.

Regional Impact

The PSA still has concerns about the impact in regional communities. Whilst at this stage no positions are 'lost' from the Public Service, they are transferred to Adelaide. There will be an adverse impact on regional employment with flow on effects felt in the community. Redeployment in regional areas is significantly more difficult where options for suitable alternative employment are limited.

The PSA will continue to raise these and other issues and keep members informed of developments. Worksite meetings will be held over coming weeks to give members the opportunity to ask questions and provide feedback. 

Should you have any queries, please contact PSA Industrial Officer Josie Barbaro on jxb@cpsu.asn.au or 8205 3295.

PSA/CPSU WORKING FOR MEMBERS

19 October 2007